Daniel:
There are several things you can do.
1. Find a private investor to cash out the loan. Make whatever deal you can put together to make the investor happy. Equity participation and cash flow to investor is one idea. Work out a deal that works well for the investor.
2. Bring in a private investor to pick up the negative cash flow with the ARM in place. Give him a piece of the pie with an option, or use a joint venture deal.
3. Sell the property using a lease option and ride out the negative cash flow until the option is exercised. Your initial option money may help a little with your short term negative cash flow. Also by doing a lease option you may be able to get a little more monthly rent than before, also helping with the negative.
Just a few suggestions, I am sure others will come up with some good ideas.
Don Wede